| Budget Amount *help |
¥3,900,000 (Direct Cost: ¥3,000,000、Indirect Cost: ¥900,000)
Fiscal Year 2010: ¥1,170,000 (Direct Cost: ¥900,000、Indirect Cost: ¥270,000)
Fiscal Year 2009: ¥1,300,000 (Direct Cost: ¥1,000,000、Indirect Cost: ¥300,000)
Fiscal Year 2008: ¥1,430,000 (Direct Cost: ¥1,100,000、Indirect Cost: ¥330,000)
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| Research Abstract |
We develop a simple empirical method to measure the welfare loss in monopolistic insurance markets. We apply the method to the Japanese auto insurance market and found that the loss is around 15.4 percent compared to the competitive insurance market. We conjecture that the welfare loss primarily comes from the monopolistic market structure rather than asymmetric information problem, because the magnitude of adverse selection is small, if any.
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